Canadian producer Encana said Friday it has agreed to sell its gas-rich Bighorn assets in northwestern Alberta for about $1.8 billion to Jupiter Resources.
The sale includes about 360,000 acres and Encana’s working interests in all pipelines, facilities and service arrangements, the company said.
The properties produced 319,000 Mcfe/d in the first quarter, Jupiter said.
Encana spokesman Doug McIntyre said, “With our focus on transitioning our portfolio to include more oil and natural gas liquids we hadn’t been funding full development of the Bighorn asset in 2014.”
McIntyre said the Bighorn sale recent divestitures in the Jonah field in Wyoming, in East Texas and elsewhere “have helped us accelerate the transition of our portfolio and it’s given us the ability to act quickly, such as with the recent acquisition we announced in the Eagle Ford.”
Calgary-based Jupiter Resources is a portfolio investment of funds managed by units of New York-based investment manager Apollo Global Management.
Encana closed earlier in June on an investment in Eagle Ford Shale in South Texas, spending $3.1 billion to buy 45,000 acres.
Encana expects the Bighorn deal to close by the end of the third quarter.